Greater adviser certainty ahead of super changes

Voluntary contributions to FirstChoice Super rose sharply in November, up 25 per cent on contributions made in October, CFS said in a statement.

Overall, contributions to FirstChoice across November and December rose more than 35 per cent on the prior two months of September and October.

CFS general manager of product and investments Peter Chun said the rise in voluntary contributions coincides with the passing of the federal government’s super reforms into legislation, providing customers and their advisers with certainty.

“These are the largest changes to Australia’s super system in almost a decade and this spike in voluntary contributions reflects not only more confidence in the system, but a sentiment to act early and take advantage of this window before the new rules take effect,” Mr Chun said.

“We expect to see further increases in contributions as the June 2017 deadline approaches.”

From 1 July, changes to the non-concessional contributions rules include a reduced annual non-concessional contribution cap, from $180,000 to $100,000, for people with a total super balance of less than $1.6 million.

Further, CFS said those with total superannuation balances of $1.6 million or more on 30 June 2017 will no longer be able to make non-concessional contributions in the 2017-18 financial year.